In Port News 12/05/2015
The Vietnam National Shipping Lines (Vinalines) is not planning to give up its control in the Hai Phong Port, even as external investors are bidding for a controlling percentage in the northern Vietnam’s largest seaport.
Particularly, the shipping company has proposed to retain at least 51 per cent in major ports of Hai Phong, Da Nang, Can Tho and Dinh Vu. With regards to Hai Phong Port, Vinalines wants to hold up to 65 per cent, instead of just 51 per cent as previously directed by the government, local newswire VnExpress.net reported.
Meanwhile, it will hold less than 50 per cent in Nghe Tinh, Cam Ranh, Saigon, Cai Mep and SSIT Vung Tau ports. Vinalines will also consider fully divesting from Quang Ninh, Phu My and Khuyen Luong ports.
If the proposal is approved, Oman’s State General Reserve Fund (SGRF) and Vietnam’s biggest property developer Vingroup, which are in race for majority holding in Hai Phong Port, will not be able to fulfill their ambition.
Vinalines reportedly said that the proposal to hold 65 per cent in Hai Phong Port is in alignment with the administration authorities’ orientation for several vital seaports. In addition, given the tough conditions in the maritime transportation business, the port will be the spearhead to help it overcome challenges, Vinalines added.
The Oman wealth fund and Vingroup will encounter more obstacles in acquiring more than half of the port, as the Ministry of Finance of Vietnam has targeted to assist Vinalines to remain its leading position in the local seaport sector.
While many other ports faced losses and are unattractive to private investors, Hai Phong Port generated a 15 per cent growth in profit last year. The Vietnam Oman Investments (VOI Fund) joint venture between the SGRF and the Vietnam State Capital Investment Corporation said it will purchase the entire shares that the Vietnamese government plans to offload, while Vingroup wants to acquire as much as 80 per cent.
